Profession tax deduction

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Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2013 Ex. I am employer and deduct PT of employees.
If employee one month leave.will profession tax will be deducted for that month.

PT should be deducted on monthly salary
basis or yearly ???????

Ajay Mishra

Ajay Mishra (Expert)
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04 January 2013 Hi

Yes, if you pay salary then deduct.

Profession tax also called tax on employment is imposed by a state under article 276 of the Constitution of India. This tax is deducted from the salary of an employee every month. The profession tax amount is considered exemptible from taxable income of the employee.

Profession Tax is imposed upon professions and employments although the employee is already paying an income tax. As per Article 276, Constitution of India, the total amount payable to any one municipality, local board, district board, or any other legislative agency in the state by way of taxes on Professions, Trades, Callings and Employments is not supposed to exceed Rs. 2,500 p.a.

Employer who must have a certificate of enrollment from tax government department is defined as a person or officer who is answerable for payment or salary or wages of the employee. This authority is supposed to be the head of the office of any establishment or employer.

Profession Tax

An Employer having more than one place of work, will have to apply separately to each authority as regards the place of work coming under the jurisdiction of that authority.
Company hiring many persons has to pay profession tax since being engaged in trade and needs to have certificate of enrollment.
Every Employer has to receive a certificate of Registration within Thirty days from the date of becoming able to pay Profession Tax.
Each person liable to pay tax under this Act has to receive a Certificate of Enrollment in the prescribed manner from the prescribed authority.
If a person is in employment of any diplomatic office, office of consulate, or trade commissioner of foreign country located in any part of the state, he or she has to obtain a certificate of enrollment in case he or she is liable to pay tax and pay the tax by themselves. These offices don’t have to get certificate of registration. If any foreigners are employees in these offices then they are not liable to pay profession tax.
If a person who has to apply for a certificate of enrollment, and has several work places within State of Maharashtra, he or she will need to submit one application for all places of work. He is supposed to give one name of place of work as main place work and submit the application to an authority under whose jurisdiction, the main place of work is located.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2013 PT deduction is calculated on monthly salary????

If in April my salary is Rs.11000 and my PT is deducted Rs.200
In May i worked for 15 days and i get salary Rs.5500 then how much PT will be deducted
It will be Rs.175 or Rs.200 ???????

Ajay Mishra

Ajay Mishra (Expert)
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04 January 2013 It will be paid under Rs.5001-10000 slab i.e Rs. 175.

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